Fashion group Superdry returned to profit in the year to April 30 but said it was cautious on the near term trading outlook and stressed a need to refinance its borrowings.
The company, best known for its sweatshirts, hoodies, jackets and coats, said its current asset backed lending facility of up to £70m is due to expire at the end of January 2023.
Superdry said it had held positive discussions with prospective lenders but had not yet secured committed funding beyond January.
"The directors acknowledge that, until these discussions conclude, a material uncertainty exists around the going concern of the group, although we remain confident of a positive outcome," it said.
Superdry shares were up 9.4% today, paring 2022 losses to 59%.
The group made an adjusted profit before tax of £21.9m compared to a loss of £12.6m the previous year.
Revenue rose 9.6% to £609.6m as pandemic restrictions in its markets were lifted.
The group said it had made an encouraging start to its 2022-23 financial year, with revenue up 7% over the 22 weeks to October 1.
However, it forecast profit would fall to between £10m and £20m, as cost inflation puts pressure on margins.
"We remain cautious about the near future as we continue to face a challenging macroeconomic environment, high levels of inflation, and the potential impact of these on consumer spending patterns," it said.
